Davos, Switzerland (CNN) -- Italian Prime Minister Mario Monti said he was confident the UK would stay in the European Union, despite Prime Minister David Cameron's promise to hold a referendum on the topic.

"I am confident if there is to be a referendum, the UK citizens will decide to stay in the EU and continue to shape its future," Monti said during his special address at the World Economic Forum in Davos Wednesday.

The country wasted its surplus and "lived under the illusion we could offer change without reforms," he added. "This is what one can call promising reforms, and ending up with taxes and debt and a sovereign debt crisis."

The government chose "the policy of status quo and procrastination," he said, and "the costs of inaction were dumped were dumped on our children and grandchildren until the moment of truth."

Kenyan Prime Minister Raila Odinga says his country will not negotiate with al Qaeda-linked Somali militants who have threatened to kill Kenyan hostages unless Nairobi releases all Muslims charged with terrorism.